HomeMy WebLinkAbout027 - 04/20/1993 - AUTHORIZING THE PURCHASE AGENT TO ENTER INTO AN AN AGREEMENT FOR FINANCING BY LEASE PURCHASE OF VEHI ORDINANCE NO. 27, 1993
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE PURCHASING AGENT TO ENTER
INTO AN AGREEMENT FOR THE FINANCING BY
LEASE-PURCHASE OF VEHICLES
AND EQUIPMENT
WHEREAS, the City is authorized under the provisions of Title 31, Article
15, Part 8, C.R.S. , to acquire necessary equipment and other property for its
governmental and proprietary purposes under the provisions of a rental or
leasehold agreement with an option to purchase such equipment or property and to
provide for the payment of said property from any available municipal income; and
WHEREAS, the obligation to pay rent under such an agreement, if subject to
annual appropriation, does not constitute a "multiple-fiscal year direct or
indirect debt or other financial obligation" of the City within the meaning of
Art. X, S 20 (4) (b) of the Colorado Constitution; and
WHEREAS, the Council of the City of Fort Collins passed on second reading
Ordinance No. 4, 1993, on the 2nd day of February, 1993, which authorized the
Purchasing Agent to enter into a lease-purchase agreement with Safeco Credit
Company, Inc. to lease to the City certain equipment and vehicles; and
WHEREAS, Safeco Credit Company, Inc. has since withdrawn its lease-purchase
proposal ; and
WHEREAS, the City Council has determined that it is in the best interest
of the City to repeal Ordinance No. 4, 1993; and
WHEREAS, the City has received a proposal to lease to the City the
equipment and vehicles set forth in Section 2 below on the terms and provisions
set forth in said Section 2 from Municipal Services Group Inc. ; and
WHEREAS, the City Council has determined that it is in the best interest of
the City to enter into a lease-purchase agreement so structured; and
WHEREAS, the City Council has determined that the lease payments in a sum
not exceeding $38,262 per quarter are reasonable and proper and represent the
fair rental value of the subject equipment, and sufficient funds to make the
lease payments for 1993 are appropriated and available in the City's 1993 budget.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS
as follows:
Section 1 . That Ordinance No. 4, 1993 is hereby repealed in its entirety.
Section 2. That the Purchasing Agent be, and hereby is, authorized to enter
into a lease-purchase agreement for the equipment described below and in
accordance with the following terms and provisions:
This agreement shall be for an original term from the date of
execution of the agreement through December 31, 1993. The agreement
shall provide for renewable one-year terms thereafter, through the
life of each item subject to annual appropriation of funds needed
for lease payments. The total lease term, including the original
and all renewal terms, shall not exceed the weighted average useful
life of the property.
ITEM END OF FINAL TERM, IF RENEWED
2-Way Radio April 30, 1996
20' Mower Trailer April 30, 1996
Hand Tamper April 30, 1996
Copier April 30, 1996
MT1000 Portable Radio April 30, 1996
"Kustom" Laser Speed Det. Units April 30, 1996
"LTI" Laser Speed Det. Units April 30, 1996
Mobile Data Terminals April 30, 1997
Fuel Pump Dispensers April 30, 1998
Turf Aerator April 30, 1998
Turf Sweeper April 30, 1998
1993 Trucksters April 30, 1998
1993 Midsize Pickups April 30, 1998
72" Mowers April 30, 1998
Hydraulic Snow Broom April 30, 1998
Mower Cab Kit April 30, 1998
1993 Full Size 1/2 Ton Pickup April 30, 1998
Toro 5 Gang Mower April 30, 1998
1993 3/4 Ton Ext. Cab/Chassis April 30, 1998
5 Gang Mower, Lt. Wt. Jacobsen April 30, 1998
Hydrojet 3000 Aerator April 30, 1998
52" Rotary Mower April 30, 1998
Stepvan April 30, 1998
1993 Kawsaki Motorcycles April 30, 1998
1993 Midsize Staff Car April 30, 1998
1993 Midsize Ext. Cab Pickup April 30, 1998
1993 3/4 Ton Utility Truck April 30, 1998
Dispatch Consoles April 30, 1998
2 Yard Loader April 30, 2000
1-1/2 Ton Chipper Truck April 30, 2000
The City shall make equal quarterly payments throughout the term of such
agreement but subject to annual appropriation of the funds needed for such
payments.
If the City leases the equipment for the original term and all
successive renewal terms, the payment will not exceed the total sum
of $651,974 plus interest at a fixed rate not to exceed 6.29% per
year, which is a reasonable amount.
'The City shall have an option to purchase any piece or combination
of pieces or all of the equipment on any quarterly payment date of
any term. The option to purchase shall be exercised by paying the
quarterly payment due on said date and the unpaid principal due
after said date.
If the City renews the agreement for all the renewal terms and makes
all payments during said terms, the City shall be deemed to have
exercised the option to purchase said equipment.
The obligation to pay rent under the agreement is subject to annual
appropriation.
Section 3. That each budget adopted by the City during the term of the
agreement shall contain the information required by S 29-1-103 (3) (d) , Colorado
Revised Statutes, as amended.
Section 4. That in order to comply with generally accepted accounting
principles for the accounting of leases, the amount to be provided to the City
under the lease-purchase agreement is hereby appropriated for fiscal year 1993
as unanticipated revenue in the appropriate funds for the acquisition of the
equipment in accordance with the terms and provisions of the lease-purchase
agreement.
Introduced, considered favorably on first reading, and ordered published
this 16th day of March, A.D. 1993, and to be presented for final passage on the
20th day of April , A.D. 1993.
Mayor
4TTEST:
City Clerk
Passed and adopted on final readin s 20th day PH A.D. 1993.
M
ATTEST:
City Clerk